The housing market in British Columbia’s Interior appears to be moving toward equilibrium.
according to Interior Realtors Association, The number of homes sold increased in May (1,512), exceeding April's total (1,282).
However, last month's sales total was down 10.7% from a year ago, with 1,662 units sold in May 2023.
The figures include the Okanagan and Shuswap regions, Kamloops, Kootenay and North Peace.
The Okanagan and Suswap regions saw 926 homes sold in May, up from 785 in April.
However, all of these figures are down from May 2022. During the month, a total of 1,687 homes were sold in the Interior, including 1,050 in the Okanagan and Shuswap regions.
“Last month's market activity increased compared to the month before. However, considering the market was quite hot a year ago, it is not surprising that activity in May this year was lower than last year,” said Kaytee Sharun, president of AIR.
“This is a fairly typical level of market activity that one would expect to see in the spring.”
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Interestingly, of the dozen or so price points AIR lists (single-family homes, townhomes and condos in four regions of the South Interior), 10 have seen significant price increases since January.
For example, the benchmark price for a single-family home in the Central Okanagan was $989,800 in January. It is now $1,015,700.
In January, a townhouse in the South Okanagan was listed for $467,100. Now it's for $558,100.
A condo in Shuswap/Revelstoke that was priced at $406,300 is now selling for $430,400.
Both declines occurred in the townhouse category in the North Okanagan ($610,000 to $577,800) and Shuswap Prevelstoke ($581,700 to $554,100).
Below are the benchmark prices for homes across the Inland South in May.
Shuswap/Revelstoke
- one-parent family: $729,100
- Townhouses: $559,600
- apartment: $422,300
North Okanagan
- one-parent family: $765,400
- Townhouses: $591,600
- apartment: $325,100
Central Okanagan
- one-parent family: $1,015,700
- Townhouses: $724,300
- apartment: $507,500
South Okanagan
- one-parent family: $783,500
- Townhouses: $515,700
- apartment: $444,000
AIR monthly market statistics are listed belowAvailable online.
Another group, Mortgage Sandbox, noted that the total number of active listings in the Okanagan is trending upward.
“Demand in the Okanagan is low. Many people want to buy a home but affordability is low and this is reflected in the number of successful purchases,” the company's webpage states.
“Under these market conditions, significantly fewer people are able to realize the dream of homeownership.
“New homebuyers can’t afford the first step on the property ladder, while high interest rates are keeping existing homeowners stuck. Households who want to upgrade to a larger home are unable to get a new mortgage at current rates.”
More information on Mortgage Sandbox (which suggests that developers should build 4 and 5 bedroom apartments for several reasons, including that not everyone can afford a house) is Available online.
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